Determining Bid price on short sales

[SD Realtor]

sddodo it is a tough call. The issue at hand is that every property is unique. I have seen BPOs done by imbeciles and I have seen other ones that are very accurate. Also how long have the places been on the market? I guess it is a speculative question and the issue really is up to the investors. Remember the negotiator gathers the package up and sends it to the investors and they give a thumbs up or down. Will they take something WELL below the BPO or not? I am not so sure that there is a rule of thumb. Sounds like you already know what the BPO is so how accurate do you think that is? When was the BPO done? Was the amount of the BPO given to you from the listing agent? Anyways you can pick a number and try to deal it out to them right? 5% a bit more or a bit less? Also are there any other liens? The net is what is most important to the investors so if there are no liens then you have more play in the BPO undercut.

[5yearwaiter]

[quote=sddodo]Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!![/quote]

Now this determination is more difficult if this new program adopted by several home owners -see the link below and the Tile is “Program Will Pay Homeowners to Sell at a Loss”

[5yearwaiter]

[quote=sddodo]Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!![/quote]

Now this determination is more difficult if this new program adopted by several home owners -see the link below and the Tile is “Program Will Pay Homeowners to Sell at a Loss”

[5yearwaiter]

[quote=sddodo]Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!![/quote]

Now this determination is more difficult if this new program adopted by several home owners -see the link below and the Tile is “Program Will Pay Homeowners to Sell at a Loss”

[5yearwaiter]

[quote=sddodo]Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!![/quote]

Now this determination is more difficult if this new program adopted by several home owners -see the link below and the Tile is “Program Will Pay Homeowners to Sell at a Loss”

[5yearwaiter]

[quote=sddodo]Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!![/quote]

Now this determination is more difficult if this new program adopted by several home owners -see the link below and the Tile is “Program Will Pay Homeowners to Sell at a Loss”

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

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